Last two posts had white paper downloads:

Prior to that, I had covered various components of payment administration.

Now, payment administration has an end objective – payment processing.

Payment Processing

Once we have set up all processes for making payments, we need to make payments to a number of parties. The prime among these, especially focusing on accounts payable are:

  • Vendors
  • Employees

Key components involved are:

  • The bank
  • The cash management group (if it exists)
  • Payment release approvers
  • Approved documents for payment release

Payments can be classified based on geography / proximity:

  • Local – mainly cheques / checks
  • Within country – electronic or cheques / checks
  • Foreign currency payments – mainly electronic, for a number of organizations, special procedures exist for this

Mode of payment required plays an important role. Slowly the world is moving towards electronic transfers, however, we still have cheques / checks in vogue, Some modes are:

  • Cheques / checks
  • Wire transfers
  • EFT (Electronic fund transfer)
  • ACH (Automated clearing house)
  • SWIFT or IBAN (society-for-worldwide-interbank-financial-telecommunication) (check for more details at: – used a lot for international transfers

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